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Learning to Invest / My Dumbest Investment

URL:  http://boards.fool.com/sorry-i-just-spotted-a-typo-if-the-stock-were-30238807.aspx

Subject:  Re: Groupon Inc Date:  9/1/2012  10:43 PM
Author:  Packers101 Number:  3578 of 3863

Sorry - I just spotted a typo -

If the stock were to rise to $15 or drop to $5, the dividend yield changes only for new purchases. YOU still have a cost basis of $10, so any payouts will be based on your $10 per share cost. That is YOUR personal rate. If the company raises its payout to $2, you would now be receiving $2 on a $1 investment, and YOUR rate would then climb to 20%. But this is based on a change in the payout amount, not a change in the stock price.


This should really say

If the company raises its payout to $2, you would now be receiving $2 on a $10 investment, and YOUR rate would then climb to 20%.
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